Insurance Companies Diss & Dismiss The Limo Industry

Posted on January 6, 2016 by - Also by this author

On Dec. 15, 2015 there was a post on the Limousinesonline.com discussion forum from someone using the screen name, Eliothrift. The post asked for assistance in obtaining insurance for a new limo operation in Florida. It went on to say they are running one 2005 6-pack stretch limo and no insurance company wants to insure them because they are a “start-up.” I found this very odd since it is only a single car. How much liability could there be in this operation? While it was intriguing to me, it was not of concern.

That is, until I received a non-renewal letter from Zurich Insurance. We have been with them for years. I was offered a lower rate last year from Transportation Insurance Brokers (TIB) at renewal time, but at the suggestion of my agent, I took the higher quote offered by Zurich based on an assertion that if I stayed with them for another year, an accident we had in 2011 would “drop off” and our rates would be reduced “substantially.” Apparently this was not the case at all. I was horrified to receive this letter.

Shortly after receiving the letter, I saw another post on the forum from Streetwise Transportation indicating they had a 20-passenger bus and no insurance company would insure them. Now, I was even more concerned about what was going on in the industry with respect to fleet insurance.

Then came someone I respect and admire; Doug Schwartz posting in another private limo forum on Facebook. Schwartz asked the 800+ member of the Facebook forum if anyone was having problems with insurance renewals. The post took off like wildfire! Seems everyone is having the same problem. The most concerning post I saw was from Paula Debiasi from Chicago Coachworks who was 14 days from away from renewal and unable to obtain insurance.

I spoke with Matt Barbach, a vice president at Zurich, who would speak only in general terms and not about any particular policyholder, such as myself. Burbach indicated that a dramatic increase in settlements has been incurred during party bus rides and caused many red flags to pop up in our industry. He suspects other carriers are probably experiencing the same type of losses, and their collective reaction is to minimize their losses and decline further insuring such vehicles. Sometimes that means walking away from an entire fleet of other vehicle types simply because they don’t want party buses on their policy. As for the 6-pack stretch limo that can’t be insured, I’m still scratching my head on that one.

View comments or post a comment on this story. (4 Comments)

More LCT Blog Blog Posts

September 13, 2017

Create A Handbook Your Employees Will Actually Read

Black and white words on a page are boring and uninspiring; here are some things to consider when creating a how-to guide for your company.

August 29, 2017

Billy The Coach: How To Plan And Prepare For Success

The LCT Summit keynoter starts contributing this week to our blog by asking: What is it you want bad enough to work for?

August 16, 2017

Don’t Let Poor Grammar, Spelling, And Punctuation Ruin Your Image

You are what you write. Make sure you leave a good business impression, especially on social media.

August 8, 2017

Behind The Screens: Why Face Time Matters

Computers and smartphones have conditioned us to text and email our way through life. Here’s how Millennials and managers can work together to break the habit.

July 31, 2017

Let's Not Make AI The New Y2K Scare

Machines will not take away all of our jobs any more than the Y2K scare ushered in Armageddon.

See More

Facebook Comments ()

Comments (4)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - September 2017 $12.95 MOTORCOACH / BUS ISSUE COVER STORY: * Irizar Racks Up A Good Rookie Year * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close